The ZEW Indicator of Economic Sentiment Stands at 16.9 Points

The ZEW Indicator of Economic Sentiment for Germany makes a considerable leap upwards in the current January 2023 survey, climbing 40.2 points to a new value of 16.9 points. For the first time since February 2022, the indicator is thus back in positive territory. The assessment of the economic situation in Germany has also improved further, but only slightly. The corresponding indicator currently stands at minus 58.6 points, 2.8 points higher than in the previous month.


“The ZEW Indicator of Economic Sentiment signals a positive outlook again in January. For the first time since February 2022, the month in which the war in Ukraine began, the indicator points to a noticeable improvement in the economic situation over the next six months. The more favourable situation on the energy markets and the German government’s energy price caps have contributed to this in particular. In addition, export conditions for the German economy are improving due to China’s lifting of Covid-restrictions. Accordingly, the earnings expectations of the export-oriented and energy-intensive sectors have gone up significantly. The prospect that the inflation rate will continue to fall has brightened expectations for the consumer-related sectors”, comments ZEW President Professor Achim Wambach on current expectations.

The financial market experts’ sentiment concerning the economic development of the eurozone also improved very strongly in January, rising 40.3 points to a current reading of 16.7 points. The situation indicator also recorded an increase and currently stands at minus 54.8 points, 2.6 points above the previous month’s value.

Inflation expectations for the eurozone declined by 4.4 points in January and currently stand at minus 83.7 points.